EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 271 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 through 11, inclusive, of this act.

1-3 Sec. 2. "Association" means an association described in section 5 of

1-4 this act.

1-5 Sec. 3. "Commercial area vitalization project" includes:

1-6 1. The beautification and improvement of the public portions of any

1-7 area zoned primarily for business or commercial purposes, including,

1-8 without limitation:

1-9 (a) Public restrooms;

1-10 (b) Facilities for outdoor lighting and heating;

1-11 (c) Decorations;

1-12 (d) Fountains;

1-13 (e) Landscaping;

1-14 (f) Facilities or equipment, or both, to enhance protection of persons

1-15 and property within the improvement district;

2-1 (g) Ramps, sidewalks and plazas; and

2-2 (h) Rehabilitation or removal of existing structures; and

2-3 2. The improvement of an area zoned primarily for business or

2-4 commercial purposes by providing promotional activities.

2-5 Sec. 4. "Promotional activity" includes:

2-6 1.  Promotion of public events that benefit business or real property in

2-7 the improvement district.

2-8 2. Providing music in any public place within the improvement

2-9 district.

2-10 3. Promotion of tourism within the improvement district.

2-11 4. Marketing and economic development, including the recruitment

2-12 and retention of retail business.

2-13 5. Providing services related to security, sanitation, the removal of

2-14 graffiti, the cleaning of streets and sidewalks and providing other

2-15 municipal services that are supplemental to those typically provided by

2-16 the municipality.

2-17 6. Any other activity that benefits businesses and real property

2-18 located in the improvement district.

2-19 Sec. 5. 1. A governing body that forms an improvement district for

2-20 a commercial area vitalization project may contract with a nonprofit

2-21 association to provide the improvements that are specified in the plans

2-22 for the commercial area vitalization project. If creation of the

2-23 commercial improvement district was initiated by petition, the governing

2-24 body shall contract for that purpose with the association named in the

2-25 plan for management of the improvement district.

2-26 2. An association with which a governing body contracts pursuant to

2-27 subsection 1 must be a private nonprofit corporation and must be

2-28 identified in the plan for management of the improvement district. The

2-29 association shall maintain liability insurance covering its activities.

2-30 3. The contract between the governing body and the association is a

2-31 contract for professional services and is not subject to the limitations of

2-32 subsection 1 of NRS 354.626. The terms of the contract may extend:

2-33 (a) Beyond the terms of office of members of the governing body; and

2-34 (b) For the time necessary to cover the life of improvements and to

2-35 fulfill financial commitments for equipment, services and related

2-36 undertakings.

2-37 4. The association does not become a political subdivision, local

2-38 government, public body, governmental agency or entity, establishment

2-39 of the government, public corporation or quasi-public corporation for

2-40 any purpose solely on the basis of a contract entered into with a

2-41 governing body pursuant to subsection 1.

2-42 5. A contract executed pursuant to this section must ensure that the

2-43 type and level of services provided by the municipality at the time of the

3-1 creation of the improvement district continue after the improvement

3-2 district is formed.

3-3 Sec. 6. 1. A contract executed pursuant to section 5 of this act

3-4 must specify the approvals required for expenditures and provide for

3-5 internal controls adequate to protect the assets of the improvement

3-6 district. The contract must provide for audits of the association by the

3-7 governing body at the discretion of the governing body.

3-8 2. If an audit finds a misuse of money or any fraud in the activities

3-9 of the association, the governing body may take control of any assets of

3-10 the association related to the improvement district.

3-11 Sec. 7. An association with which a governing body contracts

3-12 pursuant to section 5 of this act may, at any time, request that the

3-13 governing body modify a plan or plat with regard to the commercial area

3-14 vitalization project. Upon the written request of the association, the

3-15 governing body may modify the plan or plat by ordinance after holding a

3-16 hearing on the proposed modification pursuant to section 10 of this act.

3-17 If the proposed modification of a plat expands the territory for

3-18 assessment, a person who owns or resides within a tract which is located

3-19 within the territory proposed to be added to the improvement district and

3-20 which is used exclusively for residential purposes may file a protest

3-21 pursuant to section 9 of this act at any time before the governing body

3-22 modifies the plat by ordinance. A petition is not required for a

3-23 modification made pursuant to this section.

3-24 Sec. 8. 1. The association with which a governing body contracts

3-25 pursuant to section 5 of this act shall cause to be prepared a report for

3-26 each fiscal year in which assessments are to be levied and collected.

3-27 2. The report prepared pursuant to subsection 1 must be filed with

3-28 the city clerk on or before February 1 of the fiscal year immediately

3-29 preceding the fiscal year to which the report applies and must include:

3-30 (a) The name of the improvement district;

3-31 (b) The fiscal year to which the report applies;

3-32 (c) Any proposed changes to the boundaries of the improvement

3-33 district for that fiscal year;

3-34 (d) The improvements to be provided for that fiscal year;

3-35 (e) An estimate of the cost of providing the improvements set forth

3-36 pursuant to paragraph (d);

3-37 (f) The method and basis of levying each assessment to be levied for

3-38 that fiscal year in sufficient detail to allow each property owner to

3-39 calculate the amount of the assessment to be levied against his property

3-40 for that fiscal year;

3-41 (g) The amount of any surplus or deficit revenues to be carried over

3-42 from a preceding fiscal year; and

4-1 (h) The amount of any money received by the district from sources

4-2 other than assessments levied pursuant to this chapter.

4-3 Sec. 9. 1. Before a proposed assessment plat for a commercial

4-4 area vitalization project is adopted by ordinance, a person who owns or

4-5 resides within a tract which:

4-6 (a) Is located within the proposed improvement district; and

4-7 (b) Is used exclusively for residential purposes,

4-8 may file with the clerk a written protest to the inclusion of the tract in the

4-9 assessment plat. The protest must be accompanied by a legal description

4-10 of the tract.

4-11 2. Upon receipt of a protest pursuant to subsection 1, the clerk shall

4-12 provide a copy of the protest and legal description of the property to the

4-13 governing body.

4-14 3. Before adopting a resolution or ordinance pursuant to NRS

4-15 271.325 and before adopting an ordinance that modifies an assessment

4-16 plat for a commercial area vitalization project to include additional tracts

4-17 of land, the governing body shall modify the assessment plat for a

4-18 commercial area vitalization project to exclude any tract for which it

4-19 received a protest pursuant to this section and which it determines will

4-20 not benefit from the activities or improvements that are proposed to be

4-21 provided by the commercial area vitalization project.

4-22 Sec. 10. 1. On or before June 30 of each year after the governing

4-23 body acquires or improves a commercial area vitalization project, the

4-24 governing body shall prepare or cause to be prepared an estimate of the

4-25 expenditures required in the ensuing fiscal year and a proposed

4-26 assessment roll assessing an amount not greater than the estimated cost

4-27 against the benefited property. The assessment must be computed

4-28 according to frontage or another uniform and quantifiable basis.

4-29 2. The governing body shall hold a public hearing upon the estimate

4-30 of expenditures and the proposed assessment roll. Notice must be given

4-31 and the hearing conducted in the manner provided in NRS 271.380 and

4-32 271.385. The assessment may not exceed the amount stated in the

4-33 proposed assessment roll unless a new hearing is held after notice is

4-34 mailed and published in the manner provided in NRS 271.305 and

4-35 271.310.

4-36 3. After the public hearing, the governing body shall confirm the

4-37 assessments, as specified in the proposed assessment roll or as modified,

4-38 and levy the assessment as provided in NRS 271.390.

4-39 4. An improvement district created for a commercial area vitalization

4-40 project is not entitled to any distribution from the local government tax

4-41 distribution account.

4-42 Sec. 11. 1. The governing body may, by resolution, dissolve an

4-43 improvement district that is created for the purposes of a commercial

5-1 area vitalization project if property owners whose property is assessed for

5-2 a combined total of more than 50 percent of the total amount of the

5-3 assessments of all the property in the improvement district submit a

5-4 written petition to the governing body that requests the dissolution of the

5-5 district within the period prescribed in subsection 2.

5-6 2. The dissolution of an improvement district pursuant to this section

5-7 may be requested within 30 days after:

5-8 (a) The first anniversary of the date the improvement district was

5-9 created; and

5-10 (b) Each subsequent anniversary thereafter.

5-11 3. As soon as practicable after the receipt of the written petition of

5-12 the property owners submitted pursuant to subsection 1, the governing

5-13 body shall pass a resolution of intention to dissolve the improvement

5-14 district. The governing body shall give notice of a hearing on the

5-15 dissolution. The notice must be provided and the hearing must be held

5-16 pursuant to the requirements set forth in section 10 of this act. If the

5-17 governing body determines that dissolution of the improvement district is

5-18 appropriate, it shall dissolve the improvement district by resolution,

5-19 effective not earlier than the 30th day after the hearing.

5-20 4. If there is indebtedness, outstanding and unpaid, incurred to

5-21 accomplish any of the purposes of the improvement district, the portion

5-22 of the assessment necessary to pay the indebtedness remains effective and

5-23 must be continued in the following years until the debt is paid.

5-24 Sec. 12. NRS 271.030 is hereby amended to read as follows:

5-25 271.030 As used in this chapter, unless the context otherwise requires,

5-28 95 of this session, have the meanings ascribed to them in those sections.

5-29 Sec. 13. NRS 271.125 is hereby amended to read as follows:

5-30 271.125 "Improvement" or "improve" means the extension, widening,

5-33 project, or an interest therein, herein authorized [.] , including, without

5-34 limitation, conducting promotional activities within an improvement

5-35 district created for a commercial area vitalization project.

5-36 Sec. 14. NRS 271.265 is hereby amended to read as follows:

5-37 271.265 1. The governing body of a county, city or town, upon

5-43 [(b)] (c) A drainage project;

6-1 [(c)] (d) An offstreet parking project;

6-2 [(d)] (e) An overpass project;

6-3 [(e)] (f) A park project;

6-4 [(f)] (g) A sanitary sewer project;

6-5 [(g)] (h) A security wall;

6-6 [(h)] (i) A sidewalk project;

6-7 [(i)] (j) A storm sewer project;

6-8 [(j)] (k) A street project;

6-9 [(k)] (l) A street beautification project;

6-10 [(l)] (m) A transportation project;

6-11 [(m)] (n) An underpass project;

6-12 [(n)] (o) A water project; and

6-13 [(o)] (p) Any combination of such projects.

6-14 2. In addition to the power specified in subsection 1, the governing

6-15 body of a city having a commission form of government as defined in NRS

6-16 267.010, upon behalf of the municipality and in its name, without any

6-17 election, may from time to time acquire, improve, equip, operate and

6-18 maintain, within or without the municipality, or both, within and without

6-19 the municipality:

6-20 (a) An electrical project;

6-21 (b) A telephone project;

6-22 (c) A combination of an electrical project and a telephone project;

6-23 (d) A combination of an electrical project or a telephone project with

6-24 any of the projects, or any combination thereof, specified in subsection 1;

6-25 and

6-26 (e) A combination of an electrical project and a telephone project with

6-27 any of the projects, or any combination thereof, specified in subsection 1.

6-28 3. In addition to the power specified in subsections 1 and 2, the

6-29 governing body of a municipality, on behalf of the municipality and in its

6-30 name, without an election, may finance an underground conversion project

6-31 with the approval of each service provider that owns the overhead service

6-32 facilities to be converted.

6-33 Sec. 15. NRS 271.280 is hereby amended to read as follows:

6-34 271.280 1. Whenever the governing body is of the opinion that the

6-43 incidental costs.

7-1 (b) An assessment plat showing:

7-2 (1) The area to be assessed.

7-3 (2) Except as otherwise provided in section 3 of [this act,] Assembly

7-4 Bill No. 95 of this session, the amount of maximum benefits estimated to

7-5 be assessed against each tract in the assessment area.

7-6 The governing body is not required to employ the services of an appraiser

7-7 to estimate or to assist the engineer in estimating the benefits to be derived

7-8 from the project.

7-9 2. The resolution or ratification may provide for one or more types of

7-10 construction, and the engineer shall separately estimate the cost of each

7-11 type of construction. The estimate may be made in a lump sum or by unit

7-12 prices, as the engineer determines is most desirable for the improvement

7-13 complete in place.

7-14 3. The resolution or document ratified must describe the project in

7-15 general terms.

7-16 4. The resolution or document ratified must state:

7-17 (a) What part or portion of the expense of the project is of special

7-18 benefit and therefore is to be paid by assessments.

7-19 (b) What part, if any, has been or is proposed to be defrayed with money

7-20 derived from other than the levy of assessments.

7-21 (c) The basis by which the cost will be apportioned and assessments

7-22 levied.

7-23 5. If the assessment is not to be made according to front feet, the

7-24 resolution or document ratified must:

7-25 (a) By apt description designate the improvement district, including the

7-26 tracts to be assessed.

7-27 (b) Describe definitely the location of the project.

7-28 (c) State that the assessment is to be made upon all the tracts benefited

7-29 by the project proportionately to the benefits received.

7-30 6. If the assessment is to be upon the abutting property upon a frontage

7-31 basis, it is sufficient for the resolution or document ratified so to state and

7-32 to define the location of the project to be made.

7-33 7. It is not necessary in any case to describe minutely in the resolution

7-34 or document ratified each particular tract to be assessed, but simply to

7-35 designate the property, improvement district or the location, so that the

7-36 various parts to be assessed can be ascertained and determined to be within

7-37 or without the proposed improvement district.

7-38 8. If the preliminary plans include a commercial area vitalization

7-39 project, then in addition to the other requirements in this section, before

7-40 the plans are ratified by the governing body, the plans must include a

7-41 plan for the management of the proposed improvement district which

7-42 must include, without limitation:

8-1 (a) The improvements proposed for each year of the first 5 fiscal years

8-2 of the proposed improvement district;

8-3 (b) An estimate of the total amount to be expended on improvements

8-4 in the first year of operation;

8-5 (c) A list of any other special assessments that are currently being

8-6 levied within the proposed improvement district;

8-7 (d) The name of any proposed association; and

8-8 (e) Any other matter that the governing body requires to be set forth in

8-9 the plan.

8-10 9. The engineer shall forthwith prepare and file with the clerk:

8-11 (a) The preliminary plans; and

8-12 (b) The assessment plat.

8-13 [9.] 10. Upon the filing of the plans and plat, they must be examined by

8-14 the governing body. If the plans and plat are found to be satisfactory, the

8-15 governing body shall make a provisional order by resolution to the effect

8-16 that the project will be acquired or improved, or both acquired and

8-17 improved.

8-18 Sec. 16. NRS 271.285 is hereby amended to read as follows:

8-19 271.285 [Whenever]

8-43 least an amount or value therein designated and found therein by the

9-1 governing body probably to be sufficient to defray the expenses and costs

9-2 incurred by the municipality taken preliminary to and in the attempted

9-3 acquisition of the project designated in the petition, and if such deposit or

9-4 pledge is not made with the treasurer within 20 days after one publication

9-5 in a newspaper of general circulation in the municipality of a notice of the

9-6 resolution’s adoption and of its content in summary form. An additional

9-7 deposit or pledge may from time to time be similarly so required as a

9-8 condition precedent to the continuation of action by the municipality.

9-9 Whenever such deposit or pledge is so made and thereafter the governing

9-10 body shall determine that such acquisition is not feasible within a

9-11 reasonable period of time, the governing body may require that all or any

9-12 portion of the costs theretofore incurred in connection therewith by the

9-13 municipality after its receipt of the petition shall be defrayed from such

9-14 deposit or the proceeds of such pledged property in the absence of such

9-15 defrayment of costs by petitioners or other interested persons within 20

9-16 days after the determination by resolution of the amount so to be defrayed

9-17 and after such published notice thereof.

9-18 2. A petition signed by owners of tracts constituting at least one-half

9-19 of the basis used for computation of assessments is sufficient to initiate

9-20 procedures for acquiring or improving a commercial area vitalization

9-21 project. A petition for acquiring or improving a commercial area

9-22 vitalization project must be accompanied by a plan describing proposed

9-23 improvements and a proposed assessment plat when submitted to the

9-24 governing body.

9-25 Sec. 17. NRS 271.290 is hereby amended to read as follows:

9-26 271.290 [Upon]

9-31 otherwise expressly provided or necessarily implied in NRS 271.285.]

9-32 2. Upon the filing of a petition for the acquisition or improvement of

9-33 a commercial area vitalization project, the governing body shall hold a

9-34 public hearing on the petition. At least 20 days before the public hearing,

9-35 the governing body shall:

9-36 (a) Mail notice of the hearing to each owner of real property within

9-37 the proposed improvement district and to each tenant who resides or

9-38 owns a business located within the proposed improvement district; and

9-39 (b) Publish notice of the hearing in a newspaper of general

9-40 circulation in the municipality,

9-41 describing the purpose and general location of the proposed

9-42 improvement district, and the date, time and place of the proposed public

9-43 hearing.

10-1 3. At the public hearing, any owner of real property or tenant who

10-2 resides or owns a business located within the proposed district for a

10-3 commercial area vitalization project may present, orally or in writing, the

10-4 reasons why he believes that:

10-5 (a) The petition does not contain a sufficient number of qualified

10-6 signatures; or

10-7 (b) The finding required by subsection 4 cannot reasonably be made

10-8 with respect to any part of the proposed improvement district.

10-9 4. After consideration of any objections made at the hearing, and of

10-10 any other information reasonably known to it, the governing body must,

10-11 as a condition precedent to the initiation of the procedure for acquiring

10-12 or improving a commercial area vitalization project, find that the public

10-13 interest will benefit by the provision of the proposed improvements within

10-14 that part of the municipality. In making this determination, the

10-15 governing body shall consider the differences it finds between the

10-16 municipality as a whole and the territory within and adjacent to the

10-17 proposed improvement district.

10-18 Sec. 18. NRS 271.305 is hereby amended to read as follows:

10-19 271.305 1. In the provisional order the governing body shall set a

10-42 (a) The kind of project proposed.

11-1 (b) The estimated cost of the project, and the portion, if any, to be paid

11-2 from sources other than assessments.

11-3 (c) The basis for apportioning the assessments, which assessments must

11-4 be in proportion to the special benefits derived to each of the several tracts

11-5 comprising the assessable property and on a front foot, area, zone or other

11-6 equitable basis.

11-7 (d) The number of installments and time in which the assessments will

11-8 be payable.

11-9 (e) The maximum rate of interest on unpaid installments of assessments.

11-10 (f) The extent of the improvement district to be assessed, by boundaries

11-11 or other brief description.

11-12 (g) The time and place of the hearing where the governing body will

11-13 consider all objections to the project.

11-14 (h) That all written objections to the project must be filed with the clerk

11-15 of the municipality at least 3 days before the time set for the hearing.

11-16 (i) [That] If the project is not a commercial area vitalization project,

11-17 that pursuant to NRS 271.306, if a majority of the property owners to be

11-18 assessed for a project proposed by a governing body object in writing

11-19 within the time stated in paragraph (h), the project must not be acquired or

11-20 improved unless:

11-21 (1) The municipality pays one-half or more of the total cost of the

11-22 project, other than a park project, with money derived from other than the

11-23 levy or assessments; or

11-24 (2) The project constitutes not more than 2,640 feet, including

11-25 intersections, remaining unimproved in any street, including an alley,

11-26 between improvements already made to either side of the same street or

11-27 between improvements already made to intersecting streets.

11-28 (j) That the description of the tracts to be assessed, the maximum

11-29 amount of benefits estimated to be conferred on each such tract and all

11-30 proceedings in the premises are on file and can be examined at the office of

11-31 the clerk.

11-32 (k) Unless there will be no substantial change, that a substantial change

11-33 in certain existing street elevations or grades will result from the project,

11-34 without necessarily including any statement in detail of the extent or

11-35 location of any such change.

11-36 (l) That a person should object to the formation of the district using the

11-37 procedure outlined in the notice if his support for the district is based upon

11-38 a statement or representation concerning the project that is not contained in

11-39 the language of the notice.

11-40 (m) That if a person objects to the amount of maximum benefits

11-41 estimated to be assessed or to the legality of the proposed assessments in

11-42 any respect:

11-43 (1) He is entitled to be represented by counsel at the hearing;

12-1 (2) Any evidence he desires to present on these issues must be

12-2 presented at the hearing; and

12-3 (3) Evidence on these issues that is not presented at the hearing may

12-4 not thereafter be presented in an action brought pursuant to NRS 271.315.

12-5 (n) If the project is a commercial area vitalization project, that:

12-6 (1) A person who owns or resides within a tract in the proposed

12-7 improvement district and which is used exclusively for residential

12-8 purposes may file a protest to inclusion in the assessment plat pursuant

12-9 to section 9 of this act; and

12-10 (2) Pursuant to NRS 271.306, if written remonstrances by the

12-11 owners of tracts constituting one-third or more of the basis for the

12-12 computation of assessments for the commercial area vitalization project

12-13 are presented to the governing body, the governing body shall not

12-14 proceed with the commercial area vitalization project.

12-15 7. The notice need not state either or both of the exceptions stated in

12-16 subsection 2 of NRS 271.306 unless either or both of the exceptions are

12-17 determined by the governing body or the engineer to be relevant to the

12-18 proposed improvement district to which the notice appertains.

12-19 8. All proceedings may be modified or rescinded wholly or in part by

12-20 resolution adopted by the governing body, or by a document prepared by

12-21 the engineer and ratified by the governing body, at any time before the

12-22 passage of the ordinance adopted pursuant to NRS 271.325, creating the

12-23 improvement district, and authorizing the project.

12-24 9. No substantial change in the improvement district, details,

12-25 preliminary plans or specifications or estimates may be made after the first

12-26 publication, posting or mailing of notice to property owners, whichever

12-27 occurs first, except for the deletion of a portion of a project and property

12-28 from the proposed program and improvement district or any assessment

12-29 unit.

12-30 10. The engineer may make minor changes in time, plans and materials

12-31 entering into the work at any time before its completion.

12-32 11. If the ordinance is for a commercial area vitalization project,

12-33 notice sent pursuant to this section must be sent by mail to each person

12-34 who owns real property which is located within the proposed

12-35 improvement district and to each tenant who resides or owns a business

12-36 located within the proposed improvement district.

12-37 Sec. 19. NRS 271.306 is hereby amended to read as follows:

12-38 271.306 1. Regardless of the basis used for apportioning

12-39 assessments, the amount apportioned to a wedge or V or any other

12-40 irregularly shaped tract must be in proportion to the special benefits thereby

12-41 derived.

12-42 2. Except as otherwise provided in [subsection 3,] subsections 3 and

12-43 4, if, within the time specified in the notice, complaints, protests and

13-1 objections in writing, that is, all written remonstrances, against acquiring or

13-2 improving the project proposed by initiation of the governing body are filed

13-3 with the clerk, signed by the owners of tracts constituting a majority of the

13-4 frontage, of the area, of the zone, or of the other basis for the computation

13-5 of assessments, as the case may be, of the tracts to be assessed in the

13-6 improvement district or in the assessment unit if the improvement district is

13-7 divided into assessment units, the project therein must not be acquired or

13-8 improved unless:

13-9 (a) The municipality pays one-half or more of the total cost of the

13-10 project, other than a park project, with money derived from other than the

13-11 levy of assessments; or

13-12 (b) The project constitutes not more than 2,640 feet, including

13-13 intersections, remaining unimproved in any street, including an alley,

13-14 between improvements already made to either side of the same street or

13-15 between improvements already made to intersecting streets. In this case the

13-16 governing body may on its own motion cause the intervening and

13-17 unimproved part of the street to be improved. Such improvements will not

13-18 be stayed or defeated or prevented by written complaints, protests and

13-19 objections thereto, unless the governing body in its sole discretion, deems

13-20 such written complaints, protests and objections proper to cause the

13-21 improvement to be stayed or prevented.

13-22 3. Written remonstrances by the owners of tracts constituting 50

13-23 percent of the basis for the computation of assessments suffice to preclude

13-24 the acquisition or improvement of a street beautification project.

13-25 4. Written remonstrances by the owners of tracts constituting at least

13-26 one-third of the basis for the computation of assessments suffice to

13-27 preclude the acquisition or improvement of a commercial area

13-28 vitalization project. For the purposes of this subsection, the property of a

13-29 single owner may not be counted as constituting more than 10 percent of

13-30 the basis.

13-31 Sec. 20. NRS 271.320 is hereby amended to read as follows:

13-32 271.320 1. After the hearing [,] and after the governing body has

13-43 majority of the frontage, of the area, of the zone, or of the other basis for

14-1 the computation of assessments stated in the notice, of the tracts to be

14-2 assessed in the improvement district or in the assessment unit, if any,

14-3 and the governing body has jurisdiction to proceed, the governing body

14-4 shall determine whether to proceed with the improvement district, and with

14-5 each assessment unit, if any, except as otherwise provided in this chapter.

14-6 2. If the governing body desires to proceed and desires any

14-7 modification, by motion or resolution it shall direct the engineer to prepare

14-8 and present to the governing body:

14-9 (a) A revised and detailed estimate of the total cost, including, without

14-10 limiting the generality of the foregoing, the cost of acquiring or improving

14-11 each proposed project and of each of the incidental costs. The revised

14-12 estimate does not constitute a limitation for any purpose.

14-13 (b) Full and detailed plans and specifications for each proposed project

14-14 designed to permit and encourage competition among the bidders, if any

14-15 project is to be acquired by construction contract.

14-16 (c) A revised map and assessment plat showing respectively the location

14-17 of each project and the tracts to be assessed therefor, not including any area

14-18 or project not before the governing body at a provisional order hearing.

14-19 3. That resolution, a separate resolution, or the ordinance creating the

14-20 improvement district may combine or divide the proposed project or

14-21 projects into suitable construction units for the purpose of letting separate

14-22 and independent contracts, regardless of the extent of any project

14-23 constituting an assessment unit and regardless of whether a portion or none

14-24 of the cost of any project is to be defrayed other than by the levy of special

14-25 assessments. Costs of unrelated projects must be segregated for assessment

14-26 purposes as provided in this chapter.

14-27 Sec. 21. NRS 271.325 is hereby amended to read as follows:

14-28 271.325 1. When an accurate estimate of cost, full and detailed plans

14-43 any.

15-1 (b) The kind and location of each project proposed, without mentioning

15-2 minor details.

15-3 (c) The amount or proportion of the total cost to be defrayed by

15-4 assessments, the method of levying assessments, the number of installments

15-5 and the times in which the costs assessed will be payable.

15-6 (d) The character and extent of any construction units.

15-7 4. The engineer may further revise the cost, plans and specifications

15-8 and map from time to time for all or any part of any project, and the

15-9 ordinance may be appropriately amended before letting any construction

15-10 contract therefor and before any work being done other than by

15-11 independent contract let by the municipality.

15-12 5. The ordinance, as amended if amended, must order the work to be

15-13 done as provided in this chapter.

15-14 6. Upon adoption or amendment of the ordinance, the governing body

15-15 shall cause to be filed in the office of the county recorder a certified copy

15-16 of a list of the tracts to be assessed and the amount of maximum benefits

15-17 estimated to be assessed against each tract in the assessment area, as shown

15-18 on the assessment plat as revised and approved by the governing body

15-19 pursuant to NRS 271.320. Neither the failure to record the list as provided

15-20 in this subsection nor any defect or omission in the list regarding any parcel

15-21 or parcels to be included within the district affects the validity of any

15-22 assessment, the lien for the payment thereof or the priority of that lien.

15-23 7. The governing body may not adopt an ordinance creating or

15-24 modifying the boundaries of an improvement district for a commercial

15-25 area vitalization project if the boundaries of the improvement district

15-26 overlap an existing improvement district created for a commercial area

15-27 vitalization project.

15-28 Sec. 22. NRS 271.335 is hereby amended to read as follows:

15-29 271.335 1. No contract for doing construction work for acquiring or

15-43 provisions of chapter 338 of NRS.

16-1 4. The municipality may waive any irregularity in the form of any bid.

16-2 5. Any contract may be let on a lump sum or on a unit basis.

16-3 6. No contract may be entered into for such work unless the contractor

16-4 gives an undertaking with a sufficient surety or sureties approved by the

16-5 governing body and in an amount fixed by it for the faithful performance of

16-6 the contract and for payment of the contract.

16-7 7. Upon default in the performance of any contract, any designated

16-8 official, as directed by motion of the governing body, may advertise and

16-9 relet the remainder of the work without further ordinance or resolution and

16-10 deduct the cost from the original contract price and recover any excess cost

16-11 by suit on the original bond, or otherwise.

16-12 8. All contracts must provide among other things that the person

16-13 entering into the contract with the municipality will pay for all materials

16-14 furnished and labor and services rendered for the performance of the

16-15 contract, and that any person furnishing the materials or rendering the

16-16 services may maintain an action to recover for them against the obligor in

16-17 the undertaking as though the person was named therein.

16-18 9. A contract or agreement made in violation of the provisions of this

16-19 section is voidable, and no action may be maintained thereon by any party

16-20 thereto against the municipality.

16-21 10. To the extent the municipality makes any payment thereunder, such

16-22 a contract or agreement is valid, and any such payment may be included in

16-23 any cost defrayed by the levy of assessments, unless theretofore the

16-24 municipality elects to void the contract or agreement in its entirety and to

16-25 recover any such payment from the party to whom made.

16-26 11. The governing body, except as expressly limited in this section,

16-27 may, in the letting of contracts, impose such conditions upon bidders with

16-28 regard to bonds and securities, and such guaranties of good and faithful

16-29 performance and completion of any work and the keeping of the work in

16-30 repair, and providing for any further matter or thing in connection

16-31 therewith, as may be considered by the governing body to be advantageous

16-32 to the municipality and to all interested.

16-33 12. The provisions of subsections 3 through 11, inclusive, do not

16-34 apply to work performed by an association pursuant to a contract entered

16-35 into pursuant to section 5 of this act.

16-36 Sec. 23. Sections 12, 14, 15 and 19 of this act become effective at

16-37 12:01 a.m. on October 1, 1999.